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iPhone losing momentum; Stocks gain

posted 23 Jan 2013, 16:12 by Mpelembe Admin   [ updated 23 Jan 2013, 16:12 ]

Reuters Business Video Report - Wall Street marches to the drum of upbeat earnings - with the S&P 500 in striking distance of the 1500 mark.

Blue chips are now up 9 out of the last 10 sessions, the S&P 500 rallies 2 points, while the Nasdaq adds 10.

The tech gain came ahead of some big earnings after the bell.

End-of-the-year revenues at Apple were downright unappealing, though earnings topped forecasts. Sales of its lucrative iPhone were way below expectations - somewhat confirming suspicions the mobile device is no longer as popular as it used to be.

Netflix, on the other hand, saw a surge in subscribers, resulting in a surprise profit.

It was a much different story for retailer Coach. The leather hand bag and high-end shopkeeper posted holiday-quarter sales that missed targets, blaming the fiscal cliff among other things. Investors, however, were not buying that excuse - the stock dropped more than 16 percent.

McDonald's was a surprise to the upside after key U.S. sales came in better-than-expected for the fourth quarter.

Meanwhile in Washington, The U.S. House of Representatives agreed to extend the country's ability to borrow until mid-May, temporarily easing concerns of a bitter debt ceiling stand-off.

But IMF Managing Director Christine Lagarde is not yet ready to wipe the U.S. off her list of top global risks.

CHRISTINE LAGARDE, MANAGING DIRECTOR, INTERNATIONAL MONETARY FUND:

"I would say, all advanced economies as a package, I would include Japan, the euro area and the United States, and the order I mentioned them is not specially relevant but there are threats on the horizon if those regions or countries do not keep up the momentum. But I think that they have it in their hands to actually transform 2013 into year of hope rather than the year of despair."

Finally, looking at the closing numbers in Europe - stocks traded mixed in a narrow trading range.


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